The biggest names in the Vietnamese market of plastic granule additives include European Plastics, An Tien Industries (HII), Crystal Plastics (PLP) and East Asia Plastics.
Ranked 3rd after telecom and textile industry in the period of 2010 – 2017, plastic industry is the industry with high growth rate of Vietnam with the growth rate from 16-18% per year. Growth is expected to be even stronger in the coming years thanks to free trade agreements such as EVFTA, CPTPP and Regional Comprehensive Economic Partnership (RCEP) …
However, in the recent years, the plastic industry has been mostly known as a plastic processing industry because it has to import 80% of its materials. This is in contrast to Vietnam’s number one advantage in producing Filler Masterbatch (additives), which is the main material in the production of plastic resins from the possession of large limestone resources in the North and the Central. . Even compared to the two major manufacturing markets, China and India, Vietnam has an advantage from a better and more stable stone material area; cheaper labor.
The total production of plastic additives in the country is less than 1 million tons / year, meeting only 20% of the domestic demand, which is still very small compared to the demand 33 million tons of the world, so Vietnamese businesses still have plenty of room to supply the market. Therefore, businesses that are able to take initiative in raw materials also mean increasing competitiveness and added value.
The biggest names in the Vietnamese market of plastic granule additives include European Plastics, An Tien Industries (HII), Crystal Plastics (PLP) and East Asia Plastics. Of which (HII) holds 12% of the market share, Crystal Plastic Technology and Manufacturing JSC (PLP) and Dong A Plastics both hold 8% of the market share, the rest comes from other sources.
PLP conceals the advantages of material and logistics areas. PLP currently owns 5 mineral mines – 2 Granite quarries in Ninh Thuan, 3 white marble quarries in Nghe An, especially CaCO3 quarries in Thung Hung and Quy Hop mountains with a total area of over 10 hectares assessed. is one of the best quality marble sources in the world in terms of brightness and whiteness with abundant reserves of up to 5,000,000m3, output of about 200,000 tons / year.
It is worth mentioning that the company’s main business activity has shifted from exploiting and selling CaCO3 stone raw material to producing Filler Masterbatch. With 4 production lines of plastic additive CaCO3 Filler Masterbatch with a capacity of 52,800 tons / year. In 2018, PLP plans to increase its charter capital to VND 315 billion to invest and upgrade its masterbatch filler production line to 95,000 tons / year.
Position is also a great competitive advantage of PLP, the factory located in Hai Phong (2km from Hai Phong port and adjacent to Hanoi – Hai Phong highway) creates favorable conditions for the transport of goods from the factory to the port, greatly reducing costs and time.
May 9, 2018, Filler Masterbatch sales of more than 100 billion dong increased by 56% over the same period in 2017, accounting for 91% of total net revenue. The reasons for the decline in revenue and profit after tax in the third quarter were only 75% compared to the second quarter of 2018 from the increase in oil prices and testing of 4 lines of crushing stone powder CaCO3 & 2 lines of coating powder After completing the relocation process from Hai Phong Factory to Nghe An Factory and deploying the installation of 2 additional HC lines, it will promise mutations in revenue and profit in the fourth quarter of 2018 and the following years when go into official operation.
According to SHS’s calculations, relocation of the stone powder factory will help PLP save 600-700,000 VND / ton on transportation costs, thereby reducing capital costs, improving improve gross profit margin for the company in the fourth quarter as well as the coming years. In 2018, SHS expects revenue of VND 482.41 billion, up 53.6% and profit after tax of VND 54.83 billion, up 6.0% year on year, EPS in 2018 is forecast to reach VND 2,358 / share. votes.
With HII, having CaCo3 additive resin factory in Yen Bai with input materials with stable reserves and owning 2 subsidiaries is An Tin Lien JSC operates in the field of freight transport, transport support and An Thanh General Production Joint Stock Company operates in the field of distribution of plastic granules, wholesale materials to help HII’s process near such as closed-loop from input to shipping and distribution, help control operations and manage efficiency.
In terms of output for the product, besides An Phat Plastic and Green Environment JSC (HOSE: AAA) – HII holding 51% capital of HII is a consuming partner , the company also has many other customers such as Mitsubishi, Philips, Marlex … An Tien Industries is targeting the largest plastic additive manufacturer in Southeast Asia. In 2018, the total revenue of An Tien Industries is expected to reach VND 2,200 billion, the expected profit is VND 120 billion, the average growth rate of 3 years from 2016 – 2018 increases 327% in revenue and 245%. about profits.
Source: Banking Times.